American Bank Note Holographics Profits Triple From 2Q

American Bank Note Holographics reported third quarter net income of $300,000, compared to net income of $700,000 for 3Q/02. Third quarter revenues were $4.6 million, compared with $4.7 million for the third quarter of 2002. For the second quarter, the firm reported revenues of $4.3 million, and net income of $100,000. During the quarter, ABNH amended an agreement with MasterCard to cover the design and acceptance of the new “MasterCard Debit” hologram. The contract was also extended to at least 2011. Under the requirements of the recent Wal-Mart debit card settlement, debit cards must have clear and conspicuous markers. The updated card standards require MasterCard debit issuers in the USA to utilize a new hologram which features the word “Debit” within the MasterCard identification area on MasterCard-branded consumer signature debit, stored-value, electronic benefits transfer, prepaid and payroll cards. Based on the settlement, debit card issuers are required to have 80% of their cards re-issued with a new “Debit” identifier by July 1, 2005, and 100% by January 1, 2007. For complete details on American Bank Note Holographics’ third quarter results visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

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Intelli-Check Third Quarter Revenues Up 49%

Intelli-Check reported that revenues for the third quarter rose 49% to $345,685 from the same period last year. Net loss in the quarter decreased to $1,204,092 from $1,223,894 for the third quarter of 2002. During the quarter the Company hired Ralph Thomas as SVP/Sales and Marketing to replace Robert Holloway. Intelli-Check also had a shareholder lawsuit dismissed by the U.S District Court for the District of New Jersey during the third quarter. The company also announced this week that Howard Davis has resigned as a member of its Board of Directors. Mr. Davis has been a director of the company since 2000. For complete details on Intelli-Check’s third quarter results visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

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Sharp’s New Smart Card Offers 1MB Flash Memory

Sharp Microelectronics of the Americas has developed a smart card with embedded 1MB Flash Memory, and is planning to be certified for “Common Criteria” and “GlobalPlatform”. Samples of the 1MB module will be available in December 2003, followed by the 512 kilobyte version in April 2004. Because its cell size is too large, traditional Smart Card chips composed of mask ROM and EEPROM are not suitable for high-density memory on multi-application Smart Cards. In contrast, the internal 1MB memory capacity is specifically tailored to support multi-application operating systems and expanded application sizes. Sharp Microelectronics of the Americas, Camas, Wash., is a U.S.-based company and a division of Sharp Electronics Corporation, which is a subsidiary of Sharp Corporation, Osaka, Japan.

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MasterCard 3Q/03 Revenues Up 10%, Profits Down 4%

MasterCard reported third quarter net income of $74.4 million compared to $77.9 million one year ago. However, the network posted a year-to-date net loss of $319 million due to the $721 million charge taken in the first quarter for the settlement of the U.S. merchant lawsuit. Total revenues for the quarter were $594 million compared to $539 million for 3Q/02. Advertising and market development expenses rose 33% for the quarter to $183 million. During the quarter MasterCard filed a motion before a District Court judge seeking to enjoin VISA from enforcing a newly-enacted bylaw requiring VISA’s 100 largest issuers of debit cards in the USA to pay a fee if they reduce their debit volume by more than 10%. The motion is scheduled to be fully briefed by November 21st, and oral argument has been set for November 24th. Also during the quarter, the European Commission issued a “Statement of Objections” challenging MasterCard’s cross-border multilateral interchange fee. MasterCard’s response is due on December 25th. MasterCard’s application with the Federal Court of Australia seeking to overturn newly adopted RBA regulations was also rejected during the third quarter. MasterCard appealed the decision on the grounds that the Federal Court made a number of reversible errors. It expects to have a hearing on its appeal in February or March. MasterCard is also a defendant in a currency conversion lawsuit filed in California which has a trial date of October 10, 2005. For complete details on MasterCard’s third quarter results visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

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USTT’s Business Express Centers Link to Kinko’s

USA Technologies’ credit card-activated “Business Express” centers, installed within top hotels, will now be linked to Kinko’s locations nationwide through a new agreement. USA Technologies expects the agreement to generate additional revenue, strengthen the company’s leadership in unattended office centers, and substantially improve customer convenience and service levels. For Kinko’s, the agreement offers additional points of presence where customers may access the company’s network of locations and experienced staff. Kinko’s is the world’s leading provider of document solutions and business services. USA Technologies is a leader in the networking of distributed assets, wireless non-cash and m-commerce transactions, associated financial/network services and interactive media technology and energy management.

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Brits Expect to be Frugal During Holiday Season

Concerns over credit card interest rates may impact Christmas spending this year. Brits are planning to tighten their belts spending £16 less on gifts for the festive season, according to debit card “Switch.” However, overall, Brits are expected to spend £868 each on presents, cards, accessories – just £6 more than last year. UK retailers appear to be echoing this view with 38% saying that they expect consumers to spend around the same this year compared to last Christmas, and 36% saying consumers will spend slightly more. However, one in five retailers are expecting us to spend less this year.

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GPN Closes $190 MM DolEx Deal

Global Payments has closed its deal to acquire Latin America Money Services and DolEx Dollar Express for $190 million. DolEx Dollar Express is a leading provider of consumer-to-consumer electronic money transfer services to the large and rapidly growing Latino community living in the U.S. and their Latin American families abroad. Global Payments Inc. is a leading provider of electronic transaction processing services for consumers, merchants, Independent Sales Organizations, financial institutions, government agencies and multi-national corporations located throughout the United States, Canada, Latin America and Europe.

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Scotiabank & Paymentech Canada Pilot Chip & PIN in Barrie

Scotiabank has partnered with Paymentech Canada to launch the first VISA cards in Canada containing a chip that is protected by a PIN. Paymentech Canada will participate in the pilot by deploying special chip-enabled, point-of-sale terminals to Paymentech merchants in the Barrie area. When conducting credit transactions with their new chip card at participating merchants,
customers will be prompted to enter a PIN, instead of signing a transaction receipt, similar to the “Chip & PIN” project in the UK. Paymentech is a single-source provider of VISA, MasterCard and Interac Direct payment processing in Canada.

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Encore Capital Income Doubles in 3Q/03

Collections firm Encore Capital Group reported pretax income for the third quarter of $5.2 million, 96% increase over 3Q/02. Gross collections for the third quarter increased by 26.7% to $49.1 million. Gross collections were $49.1 million in third quarter of 2003, an increase of 26.7% or $10.4 million over $38.7 million in the same period of 2002. The Company says it is looking for more non-credit card paper in the near-term. The Company’s exclusive “Secured Financing Facility,” under which it purchases credit card receivables, expires at the end of 2004. For complete details on Encore’s 3Q/03 performance visit CardData (www.carddata.com).

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ASK BLUETOOTH READER

Sophia Antipolis-based ASK has introduced a new “Bluetooth” handheld contactless smart card reader designed for use in mass transit areas, such as public transport, amusement parks, government offices, etc. The new “HCR825” reader is “ISO14443” and “ISO7816” compliant enabling transport staff to make a sale, top-up a passenger’s card or issue a receipt. A group of inspectors can exchange data and alert messages, to blacklist users in a fraud situation. The “HCR” product family is designed to be a mobile extension of existing systems. ASK provides a kit to facilitate and enhance application software development. The “HCR825” is part of a range of “Bluetooth” peripherals specifically designed to meet mass transit company needs. ASK hassupplied over 20 million contactless cards and contactless paper tickets for use in more than 25 countries and in 70 towns and cities in Europe, Asia and the USA.

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Equitex’s Chex Services Sold for $63 MM

Las Vegas-based iGames Entertainment and PA-based Money Centers of America have inked a deal to acquire CO-based Equitex’s Chex Services subsidiary for $63 million. The sale of Chex Services was unanimously approved and ratified by the Equitex board of directors after Equitex’s independent advisor determined that amongst other factors, the iGames Entertainment and Money Centers of America, Inc. combination of seasoned management, superior financing, and proprietary products provided more value for the Equitex shareholders than the previously announced transaction between Equitex and Cash Systems, Inc. iGames Entertainment, Inc. develops, manufactures and markets technology- based products for the gaming industry.

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Hakrinbank Launches Internet Banking Solution with Euronet’s Help

Paramaribo-based Hakrinbank NV has inked a deal with Su-Euronet Worldwide to launch the first Internet banking solution in Suriname. Hakrinbank has 51,000 customers, including 17,000 cardholders. Euronet Internet Banking is a feature-rich, state-of-the-art browser-based product that enhances the customer experience, enabling customers to view account balances and
history, transfer funds and perform bill payment transactions. The solution also has four layers of security using secure socket layer and industry standard firewalls.

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